Coal stocks in power plants to ease by Jan

Coal availability with power plants is expected by mid-January as Coal India Ltd (CIL) has increased production and freed up railway rakes.

CIL executives said the company’s average daily production had risen to 1.8 million tonnes a day and in the next few days it would touch two million tonnes. “The target is to despatch over two million tonnes a day,” a CIL executive said.

CIL’s average loading of 247-250 rakes a day has allowed it to despatch the bulk of coal to power plants outside pithead areas.

On December 17, power plants had nine days of coal reserves, up from six-day stocks a month ago. On average, power plants have coal stockpiles of 13.5 million tonnes. The number of supercritical and critical plants has declined to 9 from 15.

The Central Electricity Authority stipulates power plants maintain 22 days of coal stocks.

CIL has also allowed power plants to lift as much coal as they can by using railway rakes and trucks. This has now been extended to consumers who do not have fuel supply agreements and purchase coal from e-auctions.

“This way, we can assure supplies to the power sector and to steel and cement companies,” a second CIL executive said. This has helped CIL free up railway rakes for coal supply to power plants that are far away from coal mines.

CIL had last year exposed the coal seams in mines of Mahanadi Coalfields, its largest crucial subsidiary.

This helped it to improve its daily average production of 1.4 million tonnes. By March 31, the company had exposed 1,156.38 million cubic metres of coal seams.